South Korea Industrial production likely improved slightly in May

South Korea is scheduled to release May industrial production (IP) data on 30 June.

According to Standard Chartered, South Korea's IP is expected to have increased 0.9% m/m on a seasonally adjusted basis, and to have contracted 2.5% y/y due to fewer working days this May than last year and sluggish export performance because of the global economic slowdown. 

Unit prices of petroleum products have dropped due to lower global oil prices, as has the quantity produced. Automobile production dropped 2.1% y/y in May. Manufacturing inventory has been increasing in the past three months and likely contributed to weak IP. The information and communications technology sector's launch of new products in Q2 is likely to contribute 0.9ppt to growth m/m in May, says Standard Chartered.